Economics: Private and Public Choice
16th Edition
ISBN: 9781337642224
Author: James D. Gwartney; Richard L. Stroup; Russell S. Sobel
Publisher: Cengage Learning US
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Question
Chapter 22, Problem 8CQ
To determine
Short run and long run supply curves of a perfect competitive firm.
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Students have asked these similar questions
The elasticity of Supply is an important concept in Microeconomics as it relates to a business's ability to adjust its production and its production facility in response to market developments. Think of some examples of products and businesses that would have various degrees of Elasticity of Supply and share them here.
For example, what would be the Elasticity of Supply for an original piece of art? What does this imply for the adjustment in this market to a change in Demand?
How would you describe the Elasticity of Supply for a product such as peaches, plums, and other tree fruit? Consider first a brief period, such as weeks, and next a much longer period such as five years. How does the time horizon influence market adjustment when there is a change in Demand?
Describe how the elasticity of demand behaves in the long run?
Suppose that bad weather negatively affects supply of oranges in Florida. How a
moderate shift in the supply curve caused by this event is going to affect total
revenue generated at this market if in the initial market equilibrium demand is
inelastic?
total revenue goes down
total revenue does not change
total revenue goes up
Chapter 22 Solutions
Economics: Private and Public Choice
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- The following graph displays four supply curves (HH, II, JJ, and KK) that intersect at point A. 200 180 160 140 B 120+ A 100 80 40 K 20 20 40 60 80 100 120 140 160 180 200 QUANTITY (Units) Using the graph, complete the table that follows by indicating whether each statement is true or false. Statement True False Between points A and D, curve JJ is elastic. Between points A and E, curve HH is unit elastic. Curve JJ is more elastic between points A and D than curve KK is between points A and C. PRICE (Dolars per unit) O ooarrow_forwardExplain the law of supply. Why does the supply curve slope upward? How is the market supply curve derived from the supply curves of individual producers?arrow_forwardGive three examples of goods with a vertical supply curve.arrow_forward
- What is the inverse of this supply function? Qs =P-20arrow_forwardwhen there is an increase in the cost of producing a good or service this will cause the supply curve to shift up and to the left true or falsearrow_forwardThe equation for a supply curve is 4P=Q. What is the elasticity of supply as price rises from 3 to 4? What is the elasticity of supply as the price rises from 7 to 8? Would you expect these answer to be the same?arrow_forward
- A chain of electronic stores sells hand-held color televisions. The weekly demand and supply models are given below. N is the number of televisions sold or supplied per week in the respective model and p is the price of the television. a. How many hand-held televisions can be sold and supplied at $144 per television? b. Find the price at which supply and demand are equal. At this price, how many televisions can be supplied and sold each week? N = −7p+1134 Demand model. N = 3.5p Supply model.arrow_forwardPlease answer the questionsarrow_forwardA demand curve shows the relationship between price and _________________ on a graph. quantity demanded quantity produced economies of scale costsarrow_forward
- Distinguish between a shift in and a movement along the supply curve.arrow_forwardWhat is the direction of a perfectly elastic supply curve? horizontal vertical downward sloping to the left upward sloping to the rightarrow_forwardThe introduction of new technology can affect the amount of supply a business will produce. Will it cause the supply curve to increase or decrease?arrow_forward
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